Explain just what makes a great value proposition. How are great value propositions developed and how are they used in planning the marketing mix. In answering this question illustrate your answer through use of a good example where a strong value proposition has been employed.
[Notice: this is the answer which is recommended to consider as a reference only when there is no relevant material or knowledge can refer to from your lectures or textbook. Besides, the ‘great’ here as I understand means ‘outstanding’ or ‘successful’, though it can also be comprehended as ‘a large amount of’.]
A value proposition is a promise of value to be delivered and acknowledged and a belief from the customer that value will be appealed and experienced. A value proposition can apply to an entire organization, or parts thereof, or customer accounts, or products or services.
In a simple term, a value proposition is a positioning statement that explains what benefit the consumers, who are the target customers and how the company does it uniquely well.
In the case of Honda, a vehicle company which delivers to its consumers the value proposition that “the products manufactured by Honda offer the best cost performance”, the company position itself as the manufacturer providing best value-quality product.
A value proposition can be used to help integrate marketing mix to make sure they provide attractive factors to a consistent target consumer group. In a marketing plan of a product, an appropriate value proposition should be determined before the specific tactics set. In the situation of marketing concept, which is broadly used nowadays, identifying consumers demand and developing products for satisfying the need are two fundamental steps. These two steps even occur before the development of product. That means the target group and value proposition should be prioritised. For example, to attract the consumer group who does not want to absorb extra sugar and treasure their health, Coco cola has developed coke zero (sugar free) and set its price as same as the one of original coke. This conveys to consumers that the sugar free coke is just the same coke drink only without sugar. From above information, it can be told that via utilising products and pricing, Coco Cola Inc. delivered a new value proposition differing to its original product to its customers.